Calculating interest using the ____________ will result in the highest APR on a single-payment loan.
A)double declining balance method
B)discount method
C)average loan balance method
D)simple interest method

Question

Calculating interest using the ____________ will result in the highest APR on a single-payment loan. ​
A)double declining balance method
B)discount method
C)average loan balance method
D)simple interest method

Quizplus · Accepted Answer

The discount method is typically used for short-term loans and involves subtracting the interest from the loan amount upfront, resulting in a higher effective APR than other methods. Therefore, it will result in the highest APR on a single-payment loan.

Calculating Interest Using the ____________ Will Result in the Highest